ICT-Driven Strategies for Enhancing Energy Efficiency in G20 Economies: Moderating the Role of Governance in Achieving Environmental Sustainability

Abstract

Achieving environmental sustainability has become a global priority, with energy efficiency (EE) emerging as a critical pathway. This study examines the influence of information and communication technology service exports (ICT) on EE by integrating the moderating role of regulatory quality. We employ a super-slack-based measure (Super-SBM) and generalized least squares models in G20 economies throughout 2001–2023. The findings show that the average EE is 0.855, which indicates a potential for further improvement of 14.50%. The findings further show that ICT is positively related to EE, and regulatory quality delivers a conducive environment for the adoption of technologies to optimize energy usage. The findings also indicate a synergistic effect between ICT and regulatory quality, which can lead to substantial improvements in EE, emphasizing the importance of governance in facilitating technological advancements. The findings highlight the role of renewable energy and economic openness in shaping EE. Furthermore, Argentina and South Africa achieved the highest EE, reflecting their proximity to the efficient frontier. In robust tests, this study verifies its results using the generalized method of moments, panel-corrected standard error, and feasible generalized least squares models. The findings suggest that ICT and governance perspectives can provide valuable insights for policymakers aiming to enhance energy sustainability through digital transformation and institutional reforms.